Trump announces new tariffs on Switzerland, Canada, South Africa, and 7 other countries.

Trump announces new tariffs on Switzerland, Canada, South Africa, and 7 other countries.

US President Donald Trump has signed an executive order imposing higher tariffs on a range of trading partners, including Switzerland, Canada, South Africa, and seven other countries. The new tariffs, which will take effect in seven days, are part of a broader effort to reshape global trade in favor of US businesses.

The tariff rates range from 10% to 41%, with Switzerland and Syria facing the highest levies at 39% and 41% respectively. Canada, which has been a significant trading partner, will now face a 35% tariff on its goods, up from the previous 25% rate. South Africa, hit by a 20% tariff, is also among the countries affected.

The tariffs are part of Trump's ongoing trade war strategy, aimed at addressing perceived trade imbalances and ensuring that US businesses are not at a disadvantage. The order also extends the deadline for a tariff agreement with Mexico by 90 days, providing more time to negotiate a broader trade pact.

The move has been met with mixed reactions in the global markets. Asian stocks tumbled on Friday following the announcement, with MSCI's broadest index of Asia-Pacific shares outside Japan falling by 0.7%. South Korea's KOSPI plunged 3% while Taiwanese shares fell by 0.9%. Analysts have noted that the recent trade deals with the EU, Japan, and South Korea have helped to cushion the impact of the new tariffs.

Economists estimate that the tariffs could have a significant impact on the affected countries' economies, particularly those with large trade surpluses with the US, such as Cambodia. The country's deputy prime minister, Sun Chanthol, has expressed gratitude for the reduced tariff rate of 19% on its garment and footwear manufacturing sector, which employs nearly a million workers.

The new tariffs also come at a time when the US is engaged in ongoing trade negotiations with China. The deadline for a higher tariff agreement with China is set for August 12, with the White House extending the truce agreed upon in principle but yet to be approved.

References:

[1] https://www.theguardian.com/us-news/live/2025/aug/01/trump-tariffs-live-updates-executive-order-us-trade-war-deals-latest-news
[2] https://www.ndtv.com/world-news/donald-trump-hikes-tariff-rates-with-syria-worst-hit-at-41-extends-trade-deadline-8996659